Which of the Following Is NOT an Advantage of Just-In-Time

question 58

Multiple Choice

Which of the following is NOT an advantage of just-in-time inventory management?

• A) Inventory kept for shorter periods of time reduces the amount of goods that become obsolete
• B) Lower inventory levels and reduce storage cost
• C) Surplus inventory is maintained to prevent production shut-down in case of supply interruption
• D) Reducing the amount of insurance needed for lower levels of inventory

---

Definitions:

Uniform Distribution

A type of probability distribution where all outcomes are equally likely to occur within a certain range.

Continuous Uniform

A distribution that assigns an equal probability to all outcomes in a continuous range.

Random Variable

A variable whose possible values are outcomes of a statistical experiment, where the value is determined by chance.

Probability Density Function

A function that describes the relative likelihood for a continuous random variable to take on a given value.